The US Dollar daily chart
which has been producing lower highs and lower lows with the most recent lower high being a 61.8% retracement
, aligning with our descending trendline
giving confluence at the area of rejection which price printed a gravestone doji
. Looking at the 20EMA it looks although further dollar weakness will lead our 20EMA to cross over to the downside with our 200MA. Over the next week we are looking for further Dollar weakness. I have also observed the 200 MA act as support to a now long term resistance.
The US Dollar
chart is a very key tool within analysis and should be used to see whether the US Dollar
is gaining strength or losing strength.
Take profit has been placed halfway of the next monthly levels below.
Stop loss placed above 0% fibonacci level.
Consolidation may occur however, no fundamentals to move price to the upside this week.